Tag: Pros

The much talked about issue in USA today is the New Health Care Bill. It made the whole country stop for a while and they all watched the Representatives a while ago for it to be passed. The voting is over and the bill went through the House.

There has been speculations on what is this bill all about, what it covers, what are its good side and as usual and as always its bad side. The bill would cover a lot of individuals including those who already have illnesses, as to the insurance companies, it is somewhat unfair. They would be expecting losses especially for those who have pre-existing conditions. For those who are less likely be experiencing diseases, it is also unfair because they can’t use the insurance that much, though sickness is really unpredictable, it really pays to be ready.

Another thing that it brings is that the fine that they would be imposing for those who don’t have insurance 4 years from now. The fine would cost $695. The bill somewhat became compulsory. If there would be fines for non compliance, the tendency for this one is flooding of clients, could the insurance companies keep up with it, especially when most of the clients have pre-existing conditions.

The country would then be spending a lot of money for this. As the mostly said statement in the House awhile ago says, ” We would be spending money that we don’t have.”

The Americans are just hoping that the good side of the bill will out weigh the bad side. They are hoping that the bill wold be implemented well.

The decades of debate over the issue of health care did not end when the new Health Care Reform Bill was passed into law. Even with its passage in the House of Representatives, different people have their own views on this new Health Care Reform Bill. In fact, 34 Democrats who supposedly voted for a ‘yes’, instead voted for a ‘no’ in the final vote results.

Every bill or law has its own pros and cons. It may be beneficial for others but it may also be detrimental for some. With different views about its good and bad effects, people must aim for the “lesser evil” for the betterment of the majority of Americans. With the passage of this new Health Care Reform Bill, do you think that the pros outnumber the cons?

Obama explained in its signing ceremony at the White House that “this legislation will not fix everything that ails our health care system, but it moves us decisively in the right direction. This is what change looks like.” Having known Obama for its political campaign “Yes we can”, will the passage of this new Health Care Reform Bill be the neccessary change that Americans need?

Will this $940 billion new Health Care Reform Bill be beneficial to the majority of Americans? Let’s try to get straight to some of the facts as we try to explain the pros and cons of this new Health Care Reform Bill:

New Health Care Bill Facts – The PROS:

1. Probably the most beneficial fact that this new Health Care Reform Bill brings is that pre-existing conditions are now banned and abolished among health insurance contracts.

2. In addition, with the passage of this new Health Care Reform Bill, the sum insured or limited caps among health insurance contracts will be abolished and banned.

3. Extension of parents’ health insurance to their children who are young adults will rise up to the age of 27. This means more and more young adults will get beneficial health insurance coverage from their parents’ coverage until they reached the age of 27.

4. Small businesses with fewer than 50 employees will get subsidies in the form of tax credits to help cover the health insurance premiums of their employees.

5. The passage of this new Health Care Reform Bill is beneficial to drug and biotech companies since they will suddenly have additional tens of millions more insured customers who can afford their expensive medicines.

New Health Care Bill Facts – The CONS:

1. If you are young and healthy individual and want to pay for health insurance that reflects that status, you’ll now have to shoulder and pay for health insurance premiums that cover not only you but also for people who are unhealthy – the guy who smokes three packs a day, the guy who drinks a gallon of whiskey etc.

That’s because health insurance companies will no longer be able to underwrite on the basis of a person’s health status.

2. If you are geared towards aestethics and would want to go for cosmetic surgery, you will to pay an additional 5% tax on the cost of the procedure with the passage of this new Health Care Reform Bill.

3. As the new Health Care Reform Bill promises to benefit millions of poor American individuals, the rich and wealthy Americans get affected. Under this new Health Care Reform Bill, there’s a 0.9% increase in Medicare payroll taxes for Americans who earn more than $200,000 annually individually and $250,000 for couples.

That amount will rise to a 3.8% tax if reconciliation passes. It will also apply to investment income, estates, and trusts.

4. To minimize costs, young and healthy American individuals before can decide not to avail health insurance and instead use their funds to start small business. However, with the passage of this new Health Care Reform Bill, if they decided not to avail it, they have to pay $750 annually.

They no longer have the luxury to choose which particular coverage the policy covers for a less premium. What if you’re a single guy without children? Still, your health insurance policy must have pediatric services coverage. What if you’re a woman who can’t have a baby? Still, your health insurance policy must have maternity services.

Here are some more facts about this new Health Care Bill on government extractions:

1. The US government will extract a fee of $2.3 billion annually from the pharmaceutical industry. If you are a pharmaceutical company what you will pay depends on the ratio of the number of brand-name drugs you sell to the total number of brand-name drugs sold in the U.S. So, if you sell 10% of the brand-name drugs in the U.S., what you pay will be 10% multiplied by $2.3 billion, or $230,000,000. (Under reconciliation, it starts at $2.55 billion, jumps to $3 billion in 2012, then to $3.5 billion in 2017 and $4.2 billion in 2018, before settling at $2.8 billion in 2019.

2. The US government will extract a fee of $2 billion annually from medical device makers. If you are a medical device maker what you will pay depends on your share of medical device sales in the U.S. So, if you sell 10% of the medical devices in the U.S., what you pay will be 10% multiplied by $2 billion, or $200,000,000.

3. The US government will extract a fee of $6.7 billion annually from insurance companies. If you are an insurer, what you will pay depends on your share of net premiums plus 200% of your administrative costs. So, if your net premiums and administrative costs are equal to 10% of the total, you will pay 10% of $6.7 billion, or $670,000,000. In the reconciliation bill, the fee will start at $8 billion in 2014, $11.3 billion in 2015, $1.9 billion in 2017, and $14.3 billion in 2018.

What do you think of this new Health Care Bill? Is it really beneficial to the “majority” of the Americans? Will it be beneficial in the long run?

With the recent passage of the proposed Health Care Reform Bill in the House of Representatives, a lot of Americans are now looking for the explanation of the pros and cons of this new health care bill. They are asking themselves: “What does the health care bill mean to me?”

How can you explain the Obama Health Care Plan? Well, we all know that most Democrats agreed and voted “yes” to this new health care bill on the ground that it will help a lot of Americans with their health insurance costs.

In contrast, Republicans voted for a “no” simply because they claim that this Health Care Reform Bill is so expensive that it may hinder the growth of the US economy given that the total expenses of the US Government is pegged at $940 billion.

So given the contrasting ideas of both Democrats and Republicans in this Health Care Reform Bill, what are the pros and cons of this new health care bill to the millions of ordinary Americans? Let’s enumerate some of them.

Health Care Bill PROS:

1. Discrimination of health insurance companies will be eliminated. No more pre-existing conditions clauses in health insurance contracts.

2. Given the fact that millions of Americans will be insured by this new health care bill, the US Government can negotiate among health insurance firms to lower the premiums of their health insurance. This would mean less health insurance costs for a lot of Americans.

3. Tax credit will be given to those Americans who still cannot afford to avail health insurance to help them to have one.

4. Stiff competition among health insurance firms will possibly result to much lower insurance costs and more quality health insurance products and services.

5. Aside from the elimination of pre-existing conditions stated above, the coverage amount or sum insured will also be waived by health insurers.

Health Care Bill CONS:

1. Given the huge amount of expenses pegged at $940 billion in a spread of about 10 years, it might slow down the growth of heavily burdened US economy.

2. Insurance Availment Mandate. You have no choice but to get a health insurance. Otherwise, you will be subjected to a 2% tax increase which will be used to subsidize the insurance costs of other Americans. Healthy people who take care of themselves will have to pay for the burden of those who smoke, are obese, etc.

3. There will be a tax increase on people with very high income. If you are making more than half a million per annum, you will have about a 1% tax increase.

4. The US Government will have more control in the health insurance industry causing patients’ confidentiality to be more likely compromised since centralized health information will likely be maintained by the government.

5. Chances of bribery may possibly increase as health care equipment, drugs, and services may end up being rationed by the government.